This Weekend is Tax-Free in Texas

Good news parents. This weekend you can save a little money while shopping for school. But be careful. Like everything, there are rules and exceptions.

The big rule is that items are tax-free as long as they're under $100. So that computer, or car, or even that house, yea, you're paying taxes on that stuff. Now if you buy a couple of clothing items that are say $75, both of those items will be tax-free even though the total will be over a $100.

The question I had was, "What if I buy a jacket that's $125? Do I pay tax on the whole $125, or is the first $100 tax-free?"

Yea, sorry. You're getting taxed on the whole $125 dollar nut.

Then you have to pay attention to the fine print. For example, backpacks for kids are exempt, but if you get a big boy backpack...BAM! TAXED!